2026:BHC-OS:2766 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INTERIM APPLICATION (L) NO.27265 OF 2024 IN COMMERCIAL SUIT NO.270 OF 2019

1. Shrinika Infra Limited ] (Formerly, Lakshmi Properties ] Ltd.) a Company incorporated ] Under the Companies Act, 1956, ] Registered office at Industry ] House, 159, Churchgate ] Reclamation, Mumbai. ] 2. Mr. Yash Birla. ] Adult, Indian Inhabitant, ] residing at Birla House, ] Napeansea Road, ]

Mumbai. ] … Applicants In the matter between:

Rajdhani Textiles Pvt. Ltd. ] A company incorporated under the ] Companies Act, 1956 and having its ] Registered officer at 702, 7th Floor, ] Samudra Setu, Near Parsi Agiary, ] Opposite Anand Bhavan, Opposite ]

B.D. Desai, Mumbai – 400 026. ] … Respondent V/s.

1. Shrinika Infra Limited ] (formerly, Lakshmi Properties ] Ltd.) a Company incorporated ] Under the Companies Act, 1956, ] Registered office at Industry ] House, 159, Churchgate ] Reclamation, Mumbai. ] 2. Mr. Yash Birla. ] Adult, Indian Inhabitant, ] residing at Birla House, ] Napeansea Road, ]

Mumbai. ] … Defendants Digitally signed by 1/27 SUMEDH SUMEDH NAMDEO NAMDEO SONAWANE SONAWANE Date:

2026.01.31 +0530 WITH COMMERCIAL SUIT NO.270 OF 2019 WITH INTERIM APPLICATION (L) NO.25885 OF 2023 WITH NOTICE OF MOTION NO.2454 OF 2019 WITH INTERIM APPLICATION NO.2874 OF 2022 WITH INTERIM APPLICATION (L) NO.22023 OF 2022 WITH INTERIM APPLICATION NO.5998 OF 2025 ______________________________________

Mr. Girish Godbole, Senior Advocate a/w. Adv. Rubin Vakil, Adv. Punit Damodar, Adv. Akshay Dhayalkar i/by Kanga and Company for the Plaintiff.

Mr. Kevic Setalwad, Senior Advocate a/w. Adv. Siddharth Mehta, Adv. A.S. Pal, Adv. Jehan Lalkoka, Adv. Siddhartha Puthoor i/by Mehta & Padamsey for the Defendants.

Mr. Mahendra Lodha, representative of Plaintiffs.

_____________________________________________

CORAM : KAMAL KHATA, J.

RESERVED ON : 11^th December, 2025.

PRONOUNCED ON :28th January 2026.

JUDGMENT :

1. The Suit is filed for foreclosure of an English Mortgage also seeks the following reliefs: a) Money decree for Rs. 44,05,62,418/- with interest @ 21% p.a. (compound interest with quarterly rest as per the Loan Agreement) from the date of filing of the Suit till payment or realization together with additional interest as provided in the Loan Agreement until the realization thereof. b) In the event of failure to pay the aforesaid decretal amount, decree for enforcing the mortgage and for that purpose, all necessary orders and directions including foreclosing Defendant No. 1’s equity of redemption and ordering sale of the mortgaged property. c) In the event the attachment of the mortgaged property under MPID Act is vacated either by the Competent Authority or the Court, declaration that the Plaintiff would be entitled to sell the mortgaged property without intervention of the Court.

2. By an Interim Application (L) No. 27265 of 2024 filed on 30th August 2024, the Defendants seeks a preliminary decree under Order XXXIV of the CPC, contending that the suit is a redemption action concerning the mortgaged property. The Defendants admit the Loan Agreement and their obligation as a Guarantors under the Deed of Guarantee dated 22^nd March 2012.

3. By an Interim Application No.5998 of 2025 filed on 30th September 2024, the Plaintiff seek a decree on admission considering the admissions made by the Defendants in Interim Application (L) No. 27265 of 2024.

4. The issues that arise for determination are as under: i. Whether interest after capitalization partakes the character of principal; and ii. Whether the Court should exercise its discretion to reduce the contractual rate of interest;

Issue (i) Whether interest after capitalization partakes the character of principal

5. Mr. Setalvad, learned Senior Counsel appearing for the Applicants/Org. Defendants, in support of the Interim Application seeking a preliminary decree, submits that the Defendants’ principal grievance concerns the levy of contractual interest a